Question
Bridget has a limited income and consumes only wine and cheese. Her current consumption choice is four bottles of wine and 10 pounds of cheese.
Bridget has a limited income and consumes only wine and cheese. Her current consumption choice is four bottles of wine and 10 pounds of cheese. The price of wine is $10 per bottle and the price of cheese is $4 per pound. The last bottle of wine added 50 units to Bridget's utility, while the last pound of cheese added 40 units.
a. Is Bridget making the utility maximizing choice? Why or why not?
b. If not what should she do instead? Why?
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Principles of Economics
Authors: N. Gregory Mankiw
8th edition
1305585127, 978-1305971493, 978-1337516860, 1337516864, 978-0357539200, 978-1305585126
